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By definition, non-renewal rates are higher than gross dollar churn rates. However, it is interesting to see that the non-renewal rates are also higher for shorter duration contracts.

As contract sizes increase, gross dollar churn consistently trends downwards (presumably related to longer contract terms). This year’s results were largely consistent with last year’s. However, churn trended up markedly for the smaller size contract groups (<$5K median ACV).

For Entrepreneurs.com

More SaaS + Software Stats

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

26% of SAAS companies with at least $15MM in GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

More Growth Strategy Stats

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

Growing faster has twice as much impact on share price as improving margins

A 1% increase in pricing strategy yields an average 11% increase in profit

56% treat “Existing Customer Renewals” as high priority

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

The venture-backed companies that were acquired most often had a 7 percent share of female execs, as opposed to 3 percent at unsuccessful (unacquired) firms

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales